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  • Ether Price Analysis: Here’s What Just Went Down, par Bitcoin Schmitcoin, 21 June 2017

    Wednesday 21 June 2017 :: Bitcoin Magazine :: RSS
    Ether Price Analysis

    A few days ago, just before a 25% market pullback, ETH-USD reached all-time high values upward of $420 as ICO investors desperately tried to accumulate ether to purchase Bancor tokens. The Bancor ICO was single-handedly responsible for congesting the Ethereum networks as users scrambled to get their ICO orders in time. This created a scenario where individuals were spending large sums of ETH to expedite their transactions and push other transaction times further and further back — the sheer volume of which could not be handled by many exchanges and wallets.
    Coinbase Status.png
    Figure 1: Coinbase Ethereum Transactions Delayed
    Across multiple exchanges, messages like the one above began popping up yesterday as the perfect storm of ICO congestion from “Status” met a flood of ETH being sold off to BTC via the ETH-BTC markets (shown in yellow in the figure below). At the time of this article, the aftermath of the Status ICO is still being felt as many wallets and exchanges still have Ether-related services disabled. coinbase-ethbtc-Jun-21-2017-14-41-33.png
    Figure 2: ETH-BTC, 1 HR Candles, GDAX
    Once the services begin to open up and allow cold storage holders to get their coins on the market, one can only speculate how far the price will continue to be pushed down. Given the long-term, bearish indicators on the ETH-USD markets, it is entirely possible that we will see further tests of the lower support levels (shown in brown). The relatively low volume on this recent dip indicates the real price action has yet to truly begin. Because of the backlogged transactions from the Status ICO event, the volume we have seen thus far has mostly likely only been by those who held their coins on the exchange. The MACD and RSI (indicators of market momentum) are showing no sign of divergence (market momentum reversal) and there is very little upward pressure to keep the price aloft.
    coinbase-ethusd-Jun-21-2017-15-55-12.png
    Figure 3: ETH-USD, 6 HR Candles, GDAX
    Where the bottom of this bear run truly lies remains to be seen. However, for the first time since the double-digit values, the 1-day candles are showing a bearish trend on the MACD (shown in purple), and the RSI is showing a loss of momentum (divergence shown in orange). As it stands, ETH-USD is sitting on the first Fibonacci Retracement Line at ~$315 where it is flirting with the idea of lower values.
    kraken-ethusd-Jun-21-2017-16-13-58.png
    Figure 4: ETH-USD, 1 Day Candles, Kraken
    Bancor and Status set record transaction volumes and accumulated millions of USD in the form of ETH. Is $300 the bottom of this Bear Run? Maybe. But one has to ask, “What would you do if you just had two of the largest ICOs in history, where the value of the ETH used to fund your project is at all time high values? Would you watch your capital dwindle away under bearish conditions, or would you cash out?"
    Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTCMedia related sites do not necessarily reflect the opinion of BTCMedia and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

    The post Ether Price Analysis: Here’s What Just Went Down appeared first on Bitcoin Magazine. Read more Bitcoin Schmitcoin
  • Cryptos, Mining Stocks & Other Dollar Alternatives – Keith Neumeyer, par Stefan B, 21 June 2017

    Wednesday 21 June 2017 :: FSN » bitcoin :: RSS
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    from SGTreport.com

    In this episode we deconstruct the latest Bitcoin propaganda coming from mainstream rag Market Watch, which absurdly makes the case that the US Dollar is a better store of value that Bitcoin. Then, Keith Neumeyer the President & CEO of First Majestic Silver and the Chairman of First Mining Finance returns to SGT Report to discuss the aftermath of the GDXJ forced rebalancing which has created some value plays within the precious metals mining space. Thanks for tuning in.
    We are under an all out assault by You Tube AND Google, which are trying hard to KILL this TRUTH channel. If you feel called to support us, please visit SGT Report on Patreon, thank YOU!
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    Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for “fair use” for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use.
    The content in my videos and on the SGTbull07 – SGTreport.com channel are provided for informational purposes only. Use the information found in these videos as a starting point for conducting your own research and conduct your own due diligence BEFORE making any significant investing decisions. SGTbull07 – SGTreport.com assumes all information to be truthful and reliable; however, I cannot and do not warrant or guarantee the accuracy of this information. Thank you. Read more Stefan B
  • GDAX Suffers Downtime, ETH Deposits and Withdrawals Temporarily Unavailable, par CoinTelegraph By Anthony Coggine, 21 June 2017

    Wednesday 21 June 2017 :: CoinTelegraph.Com News :: RSS

    Cryptocurrency exchange platform GDAX has been experiencing downtime in transactions with ETH deposits and withdrawals still temporarily unavailable. Read more CoinTelegraph By Anthony Coggine
  • The Growing Demand of Bitcoin – Adam Meister Interview, par Stefan B, 21 June 2017

    Wednesday 21 June 2017 :: FSN » bitcoin :: RSS
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    from FutureMoneyTrends

    Subscribe to our Free Financial Newsletter:
    http://FutureMoneyTrends.com
    We have a Crypto Currency interview today with Adam Meister the Bitcoin Meister!
    With the Crypto space booming like never before we compare the different mind sets people have regarding Bitcoin from all over the world and also mention Ethereum’s surge in popularity and how it benefits Bitcoin in the bigger picture.
    Adam also discusses the possibility of Governments secretly storing Bitcoin and creating their own issued Digital Currency.
    TOPICS IN THIS INTERVIEW:
    01:35 The Bitcoin Meister’s first Bitcoin!
    04:15 Where is Bitcoin spendable?
    06:05 Ethereum’s popularity benefits Bitcoin and Blockchain
    09:15 Are Centralized Banks and Governments interested in Blockchain
    11:30 Governments Secretly Buying and Storing Bitcoin?
    12:55 The different global mind-sets towards Bitcoin
    17:00 Where to learn more from the Bitcoin Meister! Read more Stefan B
  • Time Has Come For Blockchainless Technology: IOTA’s David Sønstebø, par CoinTelegraph By Frisco d'Anconia, 21 June 2017

    Wednesday 21 June 2017 :: CoinTelegraph.Com News :: RSS

    David Sønstebø, Co-founder of the IOTA, on why the crypto world should get prepared to the blockchainless Distributed Ledger Technology. Read more CoinTelegraph By Frisco d'Anconia
  • Bitcoin Surges Back Above $2700 As India “Legalizes” Cryptocurrency, par Cheery, 21 June 2017

    Wednesday 21 June 2017 :: Silver For The People - The Blog » bitcoin :: RSS

    zerohedge.com / by Tyler Durden / Jun 20, 2017
    After crashing 30% last week, Bitcoin is now up over 33% in the last few days helped by a surge in demand from India exchanges after the India government ruled Bitcoin as legal in India
    ***
    Yet another big rebound… this time as India – the world’s second most-populous nation rules in favor of regulating Bitcoin…
    READ MORE
    The post Bitcoin Surges Back Above $2700 As India “Legalizes” Cryptocurrency appeared first on Silver For The People. Read more Cheery
  • More Universities Add Blockchain Courses to Meet Market Demand, par Alex Lielacher, 21 June 2017

    Wednesday 21 June 2017 :: Bitcoin Magazine :: RSS
    More Universities Add Blockchain Courses to Meet Market Demand

    In recent months, there has been a surge in the demand for blockchain professionals. Data from the professional networking site LinkedIn has shown that blockchain related job postings have tripled in the last 12 months. This shows that there is a high demand for blockchain experts as the potential and applicability of blockchain technology becomes more apparent to corporations. Recognizing this opportunity, several universities have added blockchain studies to their fields of study to tailor their educational offerings to these new developments in the job market.

    The University of Edinburgh, for example, has recently announced the launch of a blockchain technology laboratory within its School of Informatics through a collaboration with technology startup Input Output Hong Kong (IOHK). The new lab will focus primarily on blockchain studies. However, related interdisciplinary research will be also encouraged.
    Speaking at the launch of the blockchain technology lab, IOHK Co-Founder, Jeremy Wood stated: “IOHK’s partnership with the University of Edinburgh provides unique opportunities for current students to become the next generation of blockchain and cryptography leaders. As a headquarters for IOHK’s international academic research community, we expect to see the university facilitate innovative projects that drive how businesses and governments approach blockchain and cryptocurrencies.”
    The University of Edinburgh now joins a small but growing list of educational institutions that are including courses on blockchain technology in their curricula.
    Though the University of Edinburgh is the first to offer a blockchain course of this kind in the United Kingdom, universities in the U.S. have already been doing so for a while. Stanford University began offering a course on cryptocurrencies, blockchains and smart contracts two years ago, while the University of California, Berkeley also offers a blockchain course.
    The Massachusetts Institute of Technology (MIT) is in the process of developing a course on the subject matter, while the University of Nicosia in Cyprus is offering the world’s first MSc in Digital Currency. The master's degree covers all key areas of digital currencies such as regulation, cryptography and blockchain technology applications. Students can even pay the tuition fees for the degree in bitcoin.
    There are also a number of online courses created to cater to the rising demand for blockchain expertise. Princeton University has partnered with online learning platform Coursera to provide an intensive 11-week course on bitcoin and cryptocurrency technology.
    The Blockchain University and the B9lab also offer blockchain and cryptocurrency courses designed to cater to professionals who are seeking to improve their knowledge and have a competitive edge in the industry.
    The CryptoCurrency Certification Consortium (C4) includes Andreas Antonopoulos, Vitalik Buterin, Pamela Morgan, Josh McDougall and Michael Perklin on its board of directors. It offers cryptocurrency courses and provides participants with professional certificates upon completion. Certified Bitcoin Professional (CBP), Certified Bitcoin Expert (CBE), and Certified Ethereum Developer (CED) are the three professional certifications available.
    The rise in blockchain related courses both online and in leading educational institutions is a testament to growing confidence in the technology's ability to disrupt industry in the future. Blockchain technology is now being recognized as an applicable solution to real world business challenges and that is reflected in both the job market as well as in educational courses on offer.

    The post More Universities Add Blockchain Courses to Meet Market Demand appeared first on Bitcoin Magazine. Read more Alex Lielacher
  • Dogecoin Creator Jackson Palmer Is Concerned About Ethereum’s ICO Bubble, par Kyle Torpey, 21 June 2017

    Wednesday 21 June 2017 :: Bitcoin Magazine :: RSS
    Dogecoin Creator Jackson Palmer Is Concerned About Ethereum’s ICO Bubble

    One of the biggest stories in cryptocurrency over the past couple of months has been the meteoric rise of the ether price and the speculative frenzy around the Initial Coin Offerings (ICOs) launching on top of the Ethereum platform. In a recent video uploaded to his personal YouTube channel, Dogecoin creator Jackson Palmer shared some of his thoughts on ICOs and their effect on the ether price.

    “The real reason the [ether] price has been going up something like a hundred dollars per week for the past month is really just greed: greed from developers, greed from investors [and] greed from everybody in this speculative market,” said Palmer in a summary of his main point on the topic of Ethereum and ICOs. “And that’s not necessarily a bad thing. People making money is how the world works. But it’s the way in which it’s been happening and the speed at which people have been doing these ICOs that is a little bit concerning.”

    This Is Not Our First Rodeo with ICOs


    Before getting into the details of the current speculative bubble around ICOs, Palmer pointed out that this is not the cryptocurrency community’s first rodeo when it comes to these sorts of token sales and speculative investment opportunities.
    As specific examples of past token sales from an earlier time, Palmer pointed to Mastercoin (now Omni) and Ethereum itself.
    Then there was Havelock Investments, “literally a platform where you could buy securities or invest and get equity in a company based on bitcoin,” added Palmer.
    In addition to Havelock Investments, public offerings for investment were also made on platforms such as Bitfunder, BTC-TC and GLBSE.
    Palmer also brought up several infamous cases of bad investments or outright scams from the past.
    He discussed Neo & Bee, a startup that failed in spectacular fashion after raising funds through various bitcoin-based stock exchanges. Cyprus eventually issued an arrest warrant for Neo & Bee CEO Danny Brewster.
    Then Palmer also recalled the infamous case of Josh Garza and his schemes related to cloud mining and the altcoin known as Paycoin.
    “They launched a coin that was literally just a token to facilitate their Ponzi scheme,” said Palmer. “And they would actually sell a product that didn’t exist.”

    Why Are We Seeing a Flurry of ICOs Right Now?


    So, if these sorts of schemes have existed in the past, why are we seeing a boom around the concept today? In Palmer’s view, Ethereum’s ERC20 token standard has made it easier for anyone to launch a token sale on their own.
    “Because it’s so easy and a standard to copy, there’s been a lot of people that can just fire up an ICO in a couple of minutes,” said Palmer. “There’s actually a couple of websites out there that’ll let you generate an ICO or generate a token on Ethereum with no coding required.”
    Although previous token sales did not involve much more than a Bitcoin address and a spreadsheet, Palmer said there’s something more tangible about the process on Ethereum.
    “Something that is more tangible about Ethereum ICOs is that when you send the ether to the contract, the Ethereum network does recognize — and many wallets out there because of the ERC20 standard will recognize — that you got whatever coin or whatever token shows up in your wallet,” said Palmer. “So, it’s a lot more tangible. You’re not just sending money somewhere and never hearing about it again.”
    Palmer added that developers need to take a step back and question whether it’s right for them to raise $150 million for their “little startup.” As a comparison, Palmer noted that normal seed round funding for a startup is between half a million to a million dollars.
    “Many of them don’t even have a tangible product yet,” claimed Palmer.
    While Palmer’s video casted a cautious tone over the entire ICO market, he did mention Status.im and Civic as two projects with legitimate, tangible technology behind them.

    How Are These ICOs Affecting the Price of Ether?


    Another aspect of the speculation around Ethereum-based ICOs is the effect these digital assets have had on the price of ether. There’s been a flurry of ICOs launched on the platform in the past few months, with some projects raising over $100 million in a matter of minutes.
    “When [an ICO is launched], the only way to buy into these ERC20 contracts or these ICOs is through ether or Ethereum, so if these companies are raising $150 million in ether, that’s locking that ether up in that contract,” said Palmer. “And so, it’s taking that money off the market. So, what happens is you have this shortened supply, but there’s an ICO coming on the market every single week. And so, people are getting really excited about this and trying to buy up ether.
    “This is what’s really happening,” Palmer continued. “This is what’s driving the bulk of the [ether] purchases and trade right now is people buying ether to send to a contract in the hope they’ll get rich quick off one of these ICOs.”
    In Palmer’s view, the speculative boom and FOMO driven by the ICO market has spilled out into the entire cryptocurrency market.
    Watch the full video here:




    The post Dogecoin Creator Jackson Palmer Is Concerned About Ethereum’s ICO Bubble appeared first on Bitcoin Magazine. Read more Kyle Torpey
  • Oil, Gold and Bitcoin, par brotherjohn, 21 June 2017

    Wednesday 21 June 2017 :: Silver For The People - The Blog » bitcoin :: RSS
    investmentresearchdynamics.com / Dave Kranzler / 
    The falling price of oil did not garner any mainstream financial media attention until today, when U.S. market participants woke up to see oil (both WTI and Brent) down nearly $2.  WTI briefly dropped below $43.   The falling price of oil reflects both supply and demand dynamics.  Demand at the margin is declining, reflecting a contraction in global economic activity which, I believe the data shows, is accelerating.   Supply, on the other hand, is rising quickly as U.S. oil producers – specifically distressed shale oil companies – crank out supply in order to generate the cash flow required to service the massive energy sector debt load.
    I am quite surprised by the rapid fall of oil (WTI basis) from the $50 level, because I concluded earlier this year that the Fed was attempting to “pin” the price of oil to $50:
    The graph above is a 5-yr weekly of the WTI continuous futures contract.  Oil bottomed out in early 2016 and had been trending laterally between the mid-$40’s and $55.  I read an analysis in early 2016 that concluded that junk-rated shale oil companies would implode if oil remained in the low $40’s or lower for an extended period of time.  Note that some of the TBTF banks who underwrote shale junk debt were stuck with unsyndicated senior bank debt (i.e. they were unable to find enough investors to relieve the banks of this financial nuclear waste).  Thus, the Fed has been working to keep the price of oil levitating in the high $40’s/low $50’s, in part, to prevent financial damage to the big banks who have big exposure to shale oil debt.
    READ MORE
    The post Oil, Gold and Bitcoin appeared first on Silver For The People. Read more brotherjohn
  • Liquid Network Sidechain Project Unveiled in Canada, par CoinTelegraph By Joshua Althauser, 21 June 2017

    Wednesday 21 June 2017 :: CoinTelegraph.Com News :: RSS

    In efforts to facilitate Bitcoin scaling, Blockchain Association Canada has launched the Liquid Networks project in Ottawa. Read more CoinTelegraph By Joshua Althauser
  • Cryptocurrency Hedge Funds Generate Huge Returns As Bitcoin Surges, par Rupert Hargreaves, 21 June 2017

    Wednesday 21 June 2017 :: ValueWalk » Bitcoin :: RSS
    Cryptocurrency Hedge Funds are a real thing and doing well but watch out as correlation is high to the bitcoin price index and the newly created Crypto-currency fund index

    No matter how exotic the asset, if there are profits to be made you can be sure Wall Street will find some way of getting in on the action. That’s exactly what has happened with Bitcoin and the rest of the cryptocurrency space.
    The size of the cryptocurrency market has exploded during 2017 with the market reaching a total size of $100 billion on June 9 and rising to $113 billion this week. Bitcoin, which is possibly the most talked cryptocurrency accounts for 37.8% of this market and together with another currency Ethereum has a market capitalization of $77.6 billion.
    Cryptocurrency hedge funds bitcoin price
    While Bitcoin grabs the headlines, Ethereum, which attempts to address some of the technical shortcomings of Bitcoin, has been gaining value at an even faster rate. Ethereum may be a better substitute to Bitcoin for blockchain. According to Morgan Stanley’s analysts’ Bitcoin scales poorly due to increasing electricity consumption and long transaction times that can often take 10 minutes to more than an hour, and even that with no guarantee. Ethereum and others have tried to address those scaling challenges by centralizing more of the blockchain function, but increased centralization could also lead to increased hacking risk.

    Cryptocurrency hedge funds generate huge returns as bitcoin price surges


    To bet on a further increase in value of these cryptocurrencies, last year former Coinbase employee Olaf Carlson-Wee raised $10 million to fund Polychain Capital, a hedge fund made up of cryptocurrencies such as Bitcoin. The fund managed to secure seed funding from none other than Andreessen Horowitz among others.
    Polychain might be the latest cryptocurrency hedge fund, but it certainly isn’t the first. Pantera Capital and three other firms have been offering cryptocurrency hedge funds for quite some time, and hedge fund data firm Eurekahedge has been running and alternate Crypto-Currency Fund Index since 2013.
    The Eurekahedge Crypto-Currency Fund Index tracks the performance of five actively managed ‘Alternative-Coin’ cryptocurrency Hedge Funds that carry exposure to Bitcoin, Ethereum, and other cryptocurrencies. Like traditional hedge funds, these funds employ a range of strategies seeking to maximize upside while minimizing the downside. Since inception, the performance of this index has left traditional hedge funds trailing, and returns have even eclipsed those of the vanilla Bitcoin price index. According to Eurekahedge’s latest report:
    “Over the 46-month period shown below starting as of end-June 2013, the Eurekahedge Crypto-Currency Fund Index has returned a cumulative of 2152.32% in contrast to a return of 1408.11% for the Bitcoin Price Index. On an annualized basis, this comes to 125.35% for actively managed cryptocurrency strategies versus 102.96% for the Bitcoin Price Index.”
    Even those these returns might seem appealing; the index is “massively volatile” with annualized standard deviation for the Eurekahedge Crypto-Currency Fund Index coming in at 213.11% making it one of the most volatile strategies tracked by the data provider.
    bitcoin price index correlation to crypto funds is high


    Unsurprisingly, with an annualized return of 125.35%, Eurekahedge notes that “cryptocurrency hedge funds have outperformed the average global hedge fund, traditional FX hedge fund strategies, the MSCI ACWI and the S&P GS Precious Metals Index over all periods.” The index’s constituents also appear to provide a less volatile way to bet on the success of cryptocurrencies than just buying Bitcoin or Ethereum, although the level of volatility is off the chart. The report notes, “over a period of 14 months between December 2013 and January 2015, the Eurekahedge Crypto-Currency Fund Index lost almost 73% of its value from its 2013 high. In contrast, the Bitcoin Price Index lost almost 81% of its value.”

    Like bitcoin price and popularity, Cryptocurrency hedge funds are new, uncertain and volatile and correlated to Crypto-currency fund index


    It’s the volatility of Bitcoin and its peers that’s holding back further adoption according to Morgan Stanley. According to a recent report from the bank on the topic of Bitcoin, cryptocurrencies, and blockchain, while merchants are attracted to the opportunities cryptocurrencies might offer, they generally “find that the cryptocurrencies are far too volatile to be used.”
    Cryptocurrency hedge funds
    Still, these concerns have not stopped the recent appreciation in value of these currency alternatives. It is not clear why cryptocurrencies are appreciating so rapidly, but Morgan’s analysts speculate that there are three possible reasons behind the gains, all of which are based on increased demand as buyers rapidly warm to the opportunities these instruments provide.
    In conjunction with our FX Strategy team we identify several key potential contributors:
    1. ICOs—initial currency offerings. Rapid appreciation of cryptocurrencies is encouraging speculative formation of new currencies. Many of these new currencies don’t actually have use cases yet, but are intended to be exchange mediums for everything from virtual goods in games to banking mechanisms for products like marijuana where legal implications are not yet fully clear. ICOs are funded with existing cryptocurrencies, hence driving an appreciation circle—e.g., to support/invest in a new currency, one must buy and trade an existing cryptocurrency.
    2. Moving funds in China. Up until the last few days, a disproportionate share of Bitcoin mining was taking place in China (where there is cheap access to servers and cheap electricity). Numerous press sources including The Wall Street Journal (November 5, 2016) and Fortune (January 5, 2017) commented on the possibility that Bitcoin was being used to help avoid monetary controls in China, which may help explain why the Chinese government has cracked down on Bitcoin mining recently.
    3. Increased demand from Korea and Japan. Bitcoin appreciation seems to have been heavily driven in recent months by increased buying from Korea and Japan. In Japan, the recent legalization of Bitcoin has led to an increase in activity, including the recent opening of new Bitcoin exchanges. In Korea, however, there is not a clear explanation for the surge.

    The post Cryptocurrency Hedge Funds Generate Huge Returns As Bitcoin Surges appeared first on ValueWalk. Read more Rupert Hargreaves
  • Payza Adds 50 Bitcoin Alternatives to its Cryptocurrency Exchange, par Aziz Abdel-Qader, 21 June 2017

    Wednesday 21 June 2017 :: Cryptocurrency| Finance Magnates :: RSS
    Payza began supporting bitcoin payments and purchases back in 2014. Read more Aziz Abdel-Qader
  • Payza Adds 50 Bitcoin Alternatives to its Cryptocurrency Exchange, par Aziz Abdel-Qader, 21 June 2017

    Wednesday 21 June 2017 :: Cryptocurrency| Finance Magnates :: RSS
    Payza began supporting bitcoin payments and purchases back in 2014. Read more Aziz Abdel-Qader
  • Op Ed: How Cryptocurrency Holders Can Diversify While Deferring Taxes, par Jeff Vandrew Jr., 21 June 2017

    Wednesday 21 June 2017 :: Bitcoin Magazine :: RSS
    Quasi-charitable Trusts: How Cryptocurrency Holders Can Diversify While Deferring Taxes

    With the historic rally in Bitcoin and Ethereum, there are more investors than ever seeking to diversify their newly expanded cryptocurrency holdings. Whether this diversification involves exchanging cryptocurrency for fiat, other cryptocurrencies or a mix of both, the downside can be capital gains tax exposure.

    Capital gains (if the underlying property has been held for over a year) are taxed at 15 percent, 18.8 percent or 23.8 percent, dependent upon the amount of income received during the year. One common method of tax reduction is to spread sales/exchanges over multiple years, in order to “soak up” the maximum amount of income into the 15 percent and 18.8 percent brackets.
    If you're seeking to diversify, it’s really only practical to spread sales over a few years at most. But what if there were a way to sell immediately while still deferring this capital gains income over a much longer period, such as 20 years or even a lifetime? And what if this method were able to also provide some benefit to charity, with a corresponding charitable deduction?

    Enter the Charitable Remainder Trust


    This can actually be done with a quasi-charitable trust, namely a charitable remainder trust. With a charitable remainder trust, you contribute some amount of your cryptocurrency to a trust before selling. The trust then sells the cryptocurrency (or otherwise diversifies) on a completely tax-free basis. The proceeds of sale stay within the trust, where they can be reinvested in stocks, bonds, mutual funds, other cryptocurrency or almost any other investment asset.
    In exchange for your contribution of cryptocurrency, the trust makes a payment to you each year for so long as you are alive. (You can alternatively choose to have the payment made for the joint lives of you and your spouse, or some shorter fixed term of years.) You choose the amount of this annual payment at the time you create the trust.
    The whole process is sort of like receiving an annuity in exchange for your cryptocurrency. This payment can be a fixed amount, or it can be expressed as a fluctuating percentage of trust assets each year. When you pass away, whatever is left passes to a charity of your choice.
    There are numerous tax benefits:

    1. The sale or exchange of cryptocurrency is completely tax-free.

    2. You personally only pay tax each year on the annual payment you receive from the trust. So if you use a charitable remainder trust to sell $5M of Bitcoin in 2017, but your annual payment for the rest of your life is $250,000 per year, then you only pay tax on $250,000 in 2017. This payment would be taxed at favorable capital gains rates. Depending on the amount of your other annual income, this strategy will likely keep you in the lower capital gains brackets.

    3. In the year of trust creation, you receive an income tax deduction equal to the actuarial value of the charity’s projected gift. This actuarial value is a calculation done by your attorney-CPA. The smaller the payment you select, the larger the charitable deduction. Assuming you choose an appropriate charity, the deduction can be used to reduce up to 30 percent of your income in a given year, and any unusable amount carries forward for up to five future years. For example, if a 42-year-old man were to contribute $2.5M of cryptocurrency to a charitable remainder trust in 2017 and selected an annual payment equal to 5 percent of trust assets, he would receive a charitable deduction of approximately $480,000 (at current IRS rates). That deduction could be used against his taxable income in 2017, 2018, 2019, 2020 and 2021.

    You can even reserve the right to serve as trustee of the trust and to change the charitable remainder beneficiary whenever you please.
    There are of course many technical caveats that need to be complied with. Most important, the IRS requires that the actuarial value of the charity’s share must be at least 10 percent of the assets contributed to the trust. Be sure to consult with appropriate counsel to ensure you meet the 10 percent rule and other technical requirements.
    If you are looking to reduce and defer income taxes while keeping a guaranteed income for life and doing some good in the process, a charitable remainder trust can be the way to go.
    This article is a guest post by Jeff Vandrew Jr. It does not necessarily reflect the views of BTC Media or Bitcoin Magazine and is for general information purposes only; it should not be taken as investment advice. Investors should conduct their own due diligence and consult with a qualified tax/investment professional before attempting anything described in this article.

    The post Op Ed: How Cryptocurrency Holders Can Diversify While Deferring Taxes appeared first on Bitcoin Magazine. Read more Jeff Vandrew Jr.
  • The Bitcoin Economy, In Perspective, par HowMuch, 21 June 2017

    Wednesday 21 June 2017 :: ValueWalk » Bitcoin :: RSS
    As you see on this head-spinning graph below, the total amount of money in the world is $84 trillion. But that includes money in the bank. In physical coins and notes, the total global money supply is only $31 trillion. See the problem? Hence the rise of Bitcoin and other cryptocurrencies. Bitcoin is the cryptocurrency that refuses to die. Its demise has been predicted numerous times, and one expert calculated that its value is eighteen times more volatile than the U.S. dollar. Yet the virtual money keeps going from strength to strength.
    Bitcoin Economy
    Last year, Bitcoin became more stable than gold, and earlier this year, the price of a Bitcoin surpassed that of an ounce of gold for the first time. Currently, all the bitcoin in the world is worth $41 billion. If that amount is hard to grasp, just think of it as one Larry Page – because $41 billion also happens to be the net worth of the guy who co-founded Google with Sergey Brin.
    You’ll find both fortunes at the right side, and the lower end, of this graph, which gives you an idea of all the money in the world. You and I don’t figure on it unless you’re Larry Page. Or Bill Gates. The richest man in the world is worth $86 billion, or the net worth of Larry Page and Bitcoin combined – with enough change to buy the L.A. Lakers, the Toronto Maple Leafs, the Chicago Cubs and the Solomon Islands (not a sports team, but an entire country).
    Bitcoin is the Uber of cryptocurrencies: the biggest, baddest and best-known, but not the only one. Add it up to Litecoin, Monero and all the others, and the total volume of virtual money floating around the internet, out of the reach of governments and banks, is a whopping $100 billion. That is about as much as the current GDP of Morocco – the 60th-largest economy in the world.
    The monetary value of tech giants like Amazon ($402 billion) and (Apple $730 billion) is equivalent to the GDP of much bigger economies (Nigeria and the Netherlands, respectively). In fact, you would only need a little more than two Apples to equate the amount of actual money in dollar notes and coins in circulation around the world today – $1.5 trillion.
    Money, of course, is fiduciary, which means it only has as much value as the trust we place in it. The same goes for gold: it derives its value solely from its rarity, combined with its desirability. The current world supply of mined gold is around 171,300 metric tonnes, which could be molded into a cube with sides of about 68 feet (20.7m). Its total value? Currently around $8.2 trillion. Or about 200 times the total value of Bitcoin (or Larry Page).
    Just to give you an idea: unless you own at least $205 million (i.e. 1/200th of $41 billion), the monetary distance between the net value of Larry Page and the world’s entire supply of gold is smaller than the distance between Mr. Page’s fortune and your own. If your head is not spinning already, consider the amount of narrow money that is held in banks and wallets, under mattresses and in piggy-banks around the world: $31 trillion. ‘Narrow’ money is defined as physical money: the coins and notes that used to be the standard form of currency before the rise of more derivative forms of payment, such as checks and electronic forms of money.
    ‘Broad’ money also includes the deposits in easily accessible bank accounts that can be converted into cash relatively quickly. The sum of money under this definition is $83.6 trillion. You will have spotted a flaw in the system: if the amount of money that can be easily converted into cash is almost three times the volume of the actual worldwide supply of cash, we would have a problem if we would all want to empty our accounts at the same time. Or we could all buy shares. The total market value of publicly traded shares at stock exchanges around the world is $66.8 trillion. Not only is that a fabulously large amount of money, it is also subject to the laws of supply and demand, and highly fiduciary. A run towards or away from stocks would thoroughly deregulate the global economy, and nothing more dramatic than a minus sign in front of that amount would lead to the collapse of global civilization.
    Does that sound overly dramatic? If the see-sawing rise of Bitcoin tells us anything, it is that people are losing their trust in money, and other traditional measures of wealth. Let’s talk again when the total value of all cryptocurrencies surpasses that of the world’s supply of gold…
    Article by HowMuch
    The post The Bitcoin Economy, In Perspective appeared first on ValueWalk. Read more HowMuch
  • Latest Massive ICO Leads to Questioning of the Ethereum Crowdfunding Model, par Avi Mizrahi, 21 June 2017

    Wednesday 21 June 2017 :: Cryptocurrency| Finance Magnates :: RSS
    A messenger app raised over $270 million in less than 3 hours which raises concerns of another DAO crisis. Read more Avi Mizrahi
  • Latest Massive ICO Leads to Questioning of the Ethereum Crowdfunding Model, par Avi Mizrahi, 21 June 2017

    Wednesday 21 June 2017 :: Cryptocurrency| Finance Magnates :: RSS
    A messenger app raised over $270 million in less than 3 hours which raises concerns of another DAO crisis. Read more Avi Mizrahi
  • EBA Clearing preps revamp of Euro1 high-value payment system, 21 June 2017

    Wednesday 21 June 2017 :: Finextra Research Payments channel :: RSS
    With its new real-time payment platform set to go live in the next few months, EBA Clearing is turni... Read more
  • Visa launches $100,000 fintech challenge for Middle East and North Africa, 21 June 2017

    Wednesday 21 June 2017 :: Finextra Research Payments channel :: RSS
    Visa has announced that its Everywhere Initiative, an innovation program designed to encourage the d... Read more
  • Infrastructure Launched For Trading Digital Assets, par Shanny Basar, 21 June 2017

    Wednesday 21 June 2017 :: bitcoin on Markets Media :: RSS
    McKinsey Sees BlockChain Potential
    In London in 1698 John Castaing started to issue a detailed list of market prices called The Course of The Exchange and Other Things from his base at Jonathan’s Coffee House every Tuesday & Friday. Today Quantave is aiming to launch infrastructure which provides connectivity and liquidity aggregation for institutions to trade digital assets as volumes have grown to more than $2bn (€1.8bn) per day.

    Paul Gordon, CEO, Quantave

    Paul Gordon, chief executive of Quantave, told Markets Media: “Other consortiums and private blockchain initiatives are focused on digitising existing assets which will evolve over time. Our assumption is that dedicated digital assets require an improved exchange infrastructure.”
    Gordon said the existing infrastructure for trading digital assets has been unsuitable for institutional investors as accessing multiple venues has required separate onboarding and capital management processes, and they have not been able to aggregate liquidity. Quantave aims to allow investors to across multiple venues through independent asset safeguarding and execution functions.
    “We wanted to address the inefficiencies in the digital asset market through improving the market infrastructure and providing connectivity and liquidity aggregation,” he added. “Exchanges connect to Quantave and settle through our post-trade platform so traders can access many venues with good operational standards from a single point of access.”
    Institutional investors also have concerns about the safety of digital assets.
    “Assets are safeguarded because we are not the custodian, and they are held or administered by regulated institutions,” Gordon said.
    He continued that the rapid growth in trading volumes of digital assets, such as Bitcoin and Ether, is attracting the attention of institutional investors and traders who are keen to include this asset class amongst  their investment strategies, but the trading infrastructure has not met their standards. Quantave said in a statement that trading volumes in digital assets now regularly peak at more than $2bn per day, compared to less than $50m four years ago.
    The firm has begun testing with its initial partners ams aims to go live by the end of this year.
    “We have had initial enquiries from three significant market makers and two major bitcoin exchanges,” said Gordon.
    From Richard Johnson, equities and financial technology expert in the market structure & technology practice at consultancy Greenwich Associates:
    <script async src='http://marketsmedia.com/platform.twitter.com/widgets.js' charset="utf-8"></script> Read more Shanny Basar
  • Bank API platform TrueLayer secures $3m series A funding, 21 June 2017

    Wednesday 21 June 2017 :: Finextra Research Payments channel :: RSS
    UK startup TrueLayer, a fintech developer platform that provides access to bank APIs, has secured $3... Read more
  • Take a strategic approach to Open banking, 21 June 2017

    Wednesday 21 June 2017 :: Finextra Research Payments channel :: RSS
    Damian Richardson, Head of Innovation, Payments, NatWest, talks about open banking and its potentia... Read more
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